Ch 3 Manufacturing Models

and Metrics
Sections:
1. Mathematical Models of Production Performance
2. Manufacturing Costs
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Automation, Production Systems, and Computer-Integrated
Manufacturing, Third Edition, by Mikell P. Groover.
1

Production Concepts and

Mathematical Models
Production rate Rp
Production capacity PC
Utilization U
Availability A
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rights
Manufacturing
lead
time MLT
reserved. This
material
is protected under all copyright laws
as they
currently exist.WIP
Work-in-progress
No portion of this material may be reproduced, in any form or by
any means, without permission in writing from the publisher. For
the exclusive use of adopters of the book
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Manufacturing, Third Edition, by Mikell P. Groover.
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Operation Cycle Time

Typical cycle time for a production operation:
Tc = To + Th + Tth
where
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Tc =reserved.
cycle time,
rights
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To =currently
processing
time for the operation,
as they
exist.
No Tportion
of this material may be reproduced, in any form or by
h = handling time (e.g., loading and unloading the
any means,
withoutmachine),
permissionand
in writing from the publisher. For
production
theTexclusive
use of adopters
of the time
bookto change tools)
=
tool
handling
time
(e.g.,
th
Automation, Production Systems, and Computer-Integrated
Manufacturing, Third Edition, by Mikell P. Groover.
3

Production Rate
Batch production: batch time Tb = Tsu + QTc
Average production time per work unit Tp = Tb/Q
Production rate Rp = 1/Tp
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Job shop
production:
rights reserved.
is protected under all copyright laws
For Q =This
1, Tmaterial
p = Tsu + Tc
as they currently exist.
For quantity high production:
No portion of this material may be reproduced, in any form or by
Rp without
= Rc = 60/T
Twriting
0
p sincein
su/Q from
any means,
permission
the publisher. For
flow line
theFor
exclusive
use production
of adopters of the book
Automation,
and Computer-Integrated
Tc =Production
Tr + Max TSystems,
o and Rc = 60/Tc
Manufacturing, Third Edition, by Mikell P. Groover.
4

Production Capacity
Plant capacity for facility in which parts are made in
one operation (no = 1):

PCw = n Sw Hs Rp
where PCw = weekly plant capacity, units/wk
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River, NJ. All
Plant capacity
for facilityInc.,
in which
require
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reserved.
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multiple
operations
(no > 1):is protected under all copyright laws
as they currently exist.
nSw Hs R p
No portion of this material may be reproduced, in any form or by
PC =
no
any means,wwithout permission
in writing from the publisher. For
the exclusive use of adopters of the book
where n
of operations
in the routing
Automation,
Production
Systems,
and Computer-Integrated
o = number
Manufacturing, Third Edition, by Mikell P. Groover.
5

Utilization and Availability

Q
Utilization: U =
PC
where Q = quantity actually produced, and
PC = plant capacity
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rights reserved. This MTBF
materialisMTTR
protected under all copyright laws
A exist.
=
asAvailability:
they currently
MTBF
No portion of this material may be reproduced, in any form or by
any
means,
without
permission
in writingfailures,
from the and
publisher. For
where
MTBF
= mean
time between
the exclusive use of adopters of the book
MTTR = mean time to repair
Automation, Production Systems, and Computer-Integrated
Manufacturing, Third Edition, by Mikell P. Groover.
6

Availability MTBF and MTTR Defined

2008 Pearson Education, Inc., Upper Saddle River, NJ. All

rights reserved. This material is protected under all copyright laws
as they currently exist.
No portion of this material may be reproduced, in any form or by
any means, without permission in writing from the publisher. For
the exclusive use of adopters of the book
Automation, Production Systems, and Computer-Integrated
Manufacturing, Third Edition, by Mikell P. Groover.
7

Manufacturing Lead Time

MLT = no (Tsu + QTc + Tno)

where MLT = manufacturing lead time,
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no =reserved.
number This
of operations,
rights
material is protected under all copyright laws
setup time,
as T
they
exist.
su =currently
NoQportion
of quantity,
this material may be reproduced, in any form or by
= batch
anyT means,
without
permission
in writing from the publisher. For
=
cycle
time
per
part,
and
c
the exclusive use of adopters of the book
Tno = non-operation
Automation,
Production time
Systems, and Computer-Integrated
Manufacturing, Third Edition, by Mikell P. Groover.
8

Work-In-Process
WIP =

AU PC MLT
S w H sh

where WIP = work-in-process, pc;

A = availability,
U =Inc.,
utilization,
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Pearson Education,
Upper Saddle River, NJ. All
PC reserved.
= plant capacity,
pc/wk;
rights
This material
is protected under all copyright laws
as MLT
they currently
exist.
= manufacturing
lead time, hr;
NoSportion
of this
material
may be reproduced, in any form or by
=
shifts
per
week,
w
any means, without permission in writing from the publisher. For
per
hr/shift
sh = hours
theHexclusive
use
of shift,
adopters
of the book
Automation, Production Systems, and Computer-Integrated
Manufacturing, Third Edition, by Mikell P. Groover.
9

Costs of Manufacturing Operations

Two major categories of manufacturing costs:
1. Fixed costs - remain constant for any output level
2. Variable costs - vary in proportion to production
output level
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and variable
costsSaddle River, NJ. All
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TC = FC + VC(Q)
as they currently exist.
total
costs,may be reproduced, in any form or by
Nowhere
portionTC
of =
this
material
anyFC
means,
= fixed
without
costspermission
(e.g., building,
in writing
equipment,
from thetaxes),
publisher. For
theVC
exclusive
use of
adopters
the book
= variable
costs
(e.g.,oflabor,
materials, utilities),
Automation, Production Systems, and Computer-Integrated
Q = output level.
Manufacturing, Third Edition, by Mikell P. Groover.
10

Fixed and Variable Costs

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rights reserved. This material is protected under all copyright laws
as they currently exist.
No portion of this material may be reproduced, in any form or by
any means, without permission in writing from the publisher. For
the exclusive use of adopters of the book
Automation, Production Systems, and Computer-Integrated
Manufacturing, Third Edition, by Mikell P. Groover.
11

Manufacturing Costs
Alternative classification of manufacturing costs:
1. Direct labor - wages and benefits paid to workers
2. Materials - costs of raw materials
3. Overhead - all of the other expenses associated with
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firmSaddle River, NJ. All
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material is protected under all copyright laws
Factory
overhead
as they currently exist.
Corporate overhead
No portion of this material may be reproduced, in any form or by
any means, without permission in writing from the publisher. For
the exclusive use of adopters of the book
Automation, Production Systems, and Computer-Integrated
Manufacturing, Third Edition, by Mikell P. Groover.
12

Typical Manufacturing Costs

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rights reserved. This material is protected under all copyright laws
as they currently exist.
No portion of this material may be reproduced, in any form or by
any means, without permission in writing from the publisher. For
the exclusive use of adopters of the book
Automation, Production Systems, and Computer-Integrated
Manufacturing, Third Edition, by Mikell P. Groover.
13

Overhead Rates
Factory overhead rate:

FOHC
FOHR =
DLC
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Inc., Upper Saddle River, NJ. All
Corporate
overhead rate:
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COHC
as they currently exist.
COHRmay
= DLC
No portion of this material
be reproduced, in any form or by
any means, without permission in writing from the publisher. For
the exclusive
use of
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of the
book
where DLC
= direct
labor
costs
Automation, Production Systems, and Computer-Integrated
Manufacturing, Third Edition, by Mikell P. Groover.
14

Cost of Equipment Usage

Hourly cost of worker-machine system:
Co = CL(1 + FOHRL) + Cm(1 + FOHRm)
where Co = hourly rate, $/hr;
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C
L = labor rate, $/hr;
rights
reserved. This material is protected under all copyright laws
FOHR
= labor factory
as theyLcurrently
exist. overhead rate,
No
of this
material
Cm portion
= machine
rate,
$/hr; may be reproduced, in any form or by
any means, without permission in writing from the publisher. For
FOHRm = machine factory overhead rate
the exclusive use of adopters of the book
Automation, Production Systems, and Computer-Integrated
Manufacturing, Third Edition, by Mikell P. Groover.
15